Intel Corp. is preparing to lay off more than 21,000 employees-roughly 20% of its global workforce-as part of a sweeping overhaul under newly appointed CEO Lip-Bu Tan, according to a Bloomberg report published Tuesday. The planned cuts mark the chipmaker's most extensive workforce reduction in over a decade, as it attempts to reverse years of underperformance and mounting competitive pressure.
The announcement is expected ahead of Intel's first-quarter earnings release Thursday. Tan, who took over in late 2024, has vowed to "streamline management and rebuild an engineering-driven culture." The layoffs follow earlier moves to flatten Intel's leadership structure, with key chip divisions now reporting directly to the CEO.
Intel had 108,900 employees as of the end of 2024, according to a regulatory filing. The company previously slashed 15,000 jobs, or 15% of its workforce, in August 2024 as part of a $10 billion cost-reduction program.
Tan has publicly criticized what he described as a "bloated middle management layer" and warned employees in a town hall that the company would need to make "tough decisions." Since his appointment, he has accelerated efforts to refocus Intel's business model, including a pivot toward artificial intelligence and divesting noncore assets.
Earlier this month, Intel sold a 51% stake in its Altera programmable chip unit to private equity firm Silver Lake, continuing a strategy of shedding business lines considered peripheral to its core semiconductor operations.
Intel's once-dominant position in the semiconductor market has eroded in recent years as rivals like Nvidia and AMD have surged ahead in AI and advanced chip technologies. The company's stock has dropped approximately 67% over the past five years.
